Organization Dynamics- A Response to Growth and Decay

7/25/2019 Organization Dynamics- A Response to Growth and Decay.

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UNIT 8

ORGANISATION DYNAM ICS A

RESPONSE TO GROWTH DECAY

Structure

8.1

Introduction

Objectives

8.2

Organisation Dynamics

:

A Systems Approach

8.3 Factors that Make Organisation Dynamics A Living Growth Being

8 3 1 OqanisationalCultureand Climate

8 3 2

Sbrudlnal hange

8.4 Types of Organisation Structure

8.5 Job Analysis and Design

8.6 Authority

and

Power

8 6 1 Meaning

8 6 2 Dynamics

of

Power

8 6 3 Authaity in

the

Organisational

Context

8 6 4 C e n ~ a t i o nnd Dewntralisation

of

utbaity

8.7

Transforming and Renewing Organisation

8 7 1

ooduding

Organisation D iagnosis

8 7 2

Defining

tbeMission

8 7 3 Planning for

Improved

Perfgnnance

8 7 4 Need or Visionary Leadership

8.8 Case Studies

8.9 Summary

8.10 Answers to SAQs

8.1 INTRODUCTION

As the late Industrial Era has given way to the Information Era, long held assumptions

about organisational effectiveness have become obsolete. Steep hierarchies are no longer

needed to get things done. It is quality of relationship between producers and

consumers among work associates, and between individuals and the

me ns

by which they

:

roduce hat determines and sustains organisational success.

Organisation is intimately associated with people who are living and changing. All living

things change, none remains stable. Hence, organisations change, and wise managers

recognise this fact and use org nis tion dyn mics to update and improve the organisation.

contemplating any organisation change, it is well to weigh the probable gains and

losses before reaching a decision. In this respect, a reaff imtion of the objective is

helpful. Also preventive organisational change should

be

stressed. This includes periodic

efforts to detect areas where change is going to be needed to avoid serious organisation

trouble. It is erroneous to confine efforts solely to situations that currently exist, i.e.

concentrate upon remedial organisation changes. Normally, what is called for is either an

analysis in depth of the situation under question or a survey to uncover the broad

contributing factors.

Objectives

After studying this unit, you should be able to

describe organisational dynamics through systems approach,

discuss managerial roles in social system,

describe the factors affecting the organisation,

identify the types of organisation structure,

explain the concept of authority and power, and

outline

th

steps for transformingand renewing the organisation.


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Organisations

8 2 ORGANISATION DYNAM ICS A SYSTEMS

APPROACH

We must recognise that the organisations in which most managers operate are social

systems comprised of many inter-related subsystems only one of which is human social

system. The others would include on administrative structural subsystem, informational

decision making sub-system and an economic/technological subsystem.

(a) The

administrative/structural

subsystem is an authority, structure, responsibility

within the organisation. Who does what for whom

?

Who tells whom to do

what, when and why ?'

(b) The informationldecision making subsystem emphasizes key decision and their

information needs to keep the system going.

(c) The main concern for economic-technological subsystem is on the wor o be

done and the

ost effe tiveness

of that work withii the specific goals of the

organisation.

(d) Although the focus of the humantsocial system is on the motivation and needs

of the members of the organisation and on the leadership provided or required,

it should be emphasised that within a Systems Approach there is a clear

understanding that changes is one sub-system effect changes in other parts of

the total system. As illustrated in Figure 8.1, if the total system is healthy and

functioning well, each of its parts or sub-system is healthy and functioning well.

Also, each of its parts of sub-system is effectively interacting with one another.

Therefore,

an

organisation over a sustained period of

time

cannot afford to

overemphasis the importance of one subsystem at the expense of the others. At

the same time internal management of the organisation cannot ignore the needs

and forces from the external environment.

8 2 1

Man agerial Roles in

a

Social System

According to Ichak Adizes

(in

his book How to solve the Management Crisis , Los

Angeles,

M OR

Institute Inc., 1980) four managerial roles must be performed if an

organisation is to be

run

effectively. These four roles are Producing, Implementing,

Innovating and Integrating. Each of these managerial roles is clearly related to one of the

four social subsystem of an organisation.

(a)

manager

in

the role of producing is expected to achieve results equal to or

better than the-competition. The principal qualification for an achiever is the

possession of a functional knowledge of his field, whether marketing,

production, material, finance or any other discipline. The role of producing

emphasises, activities in the economic/technological*'ubsystem.

(b) Being individually productive and having technical skills do not necessarily

enable a manager to produce results

in

working with a group of people.

Managers should be more than individual producers and more than only having


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technical skills. They should be able to adm inister the people with whom they

Organisation

~ y ~A

work and to see that these people al so produce results. In this implementing

Response t

Growth

Decay

role managers Schedule, Coordinate, Control and Discipline . If managers are

implementers, they see to it that the system works as it has been designed to

work. Implementing emphasizes the administrative/structural subsystem.

(c) While producing and implementing are important in changing environment,

managers must use their judgement and have the discretion to change goals and

to change the system by which they are implemented. In this role, m anagers

must be organisational entrepreneurs and innovators since, unlike

administrators who are given plans to carry out and decisions to implement,

entrepreneurs have to generate their own plan of action. They have to be

self-starters. The innovating role stresses the

infonnation/decision-mg*'

subsystem.

(d) Integrating is the process by which individua l strategies are merged into a

group strategy, individual risks because group risks; individual goals are

harmonised into group goa ls, ulli mt ely individual entrepreneurship emerges as

group entrepreneurship when a g roup can operate on its own with a clear

direction in

mind

and can choose its ow n direction over time without depending

on any one individual for a successful operation. Then it can be know n that

integrating role has been perform ed adequate ly. It requires an individua l who is

sensitive to people's needs. Such an individual unifies the whole organisation

behind goals and strate gies . Integrating emphasises the '%uman/social

subsystem.

Ichak Adizes contends that whenever one of the four man agerial roles is not perform ed in

an organisation, a certain style of mismanagem ent can be observed. And yet, Adizes

argues that few managers fd l perfectly all four of these roles and thus, exhibit no

mismanagem ent style since they are a t once excellent technicians, adm inistrators,

entrepreneurs and integrators. Thus, to discuss the Role of the Manager as is done in

managem ent literature, is theoretical mistake. No one man ager can manage alone . It takes

several to perform the process adequately, several people to perform roles which seem to

be in conflict but really are complem entary. There should be individual who possess the

entrepreneurial and integrating qualities which can guide an organisation to new

directions. There sho uld be adm inistrators who can tran slate these new action s into

operative systems which should prod uce results. And there shou ld be perfo rmers who can

put the system into action and can set

an

example for efficient dynamic operation.

Otherw ise, an entreprene ur will become a crisis maker , the administrator, a

bureaucrat , and the producer, a loner ,

8.3

FACTORS THAT MAKE, ORGANISATION DYNAM IC -

A

LIVING, GROW TH BEING

83.1 Organisational Culture an d

Climate

The number of studies of organisation al culture is steadily increasing. Such studies have

used different terminology, and the same terms have been used in different meanings .

There is a need

to

clarify some terms, and evolve com mon understanding of'their use.

The v arious terms used

in

the con text of o rganisationa l culture are : values, ethics,

beliefs, ethos, climate, environm ent, culture. Ethics refers

to

normative asp ects, what is

socially desirable.

Values, beliefs, attitudes and norm s are interrelated. Interaction between beliefs and

values result in attitud e formation (attitudes = beliefs

x

values) and then produce norm.

Values and beliefs are the co re, while attitude s are the next layer, followed by no rms or

behaviour. When these get institutionalised , or accum ulate and integrate, we have

social phenomena.

The culture-related concep ts can also be seen

s

multilevel concepts.

The

core (first

level

are the values which give distinct identity to a group. This is ethos of the group. The

Random House Dictionary defines ethos as the fundam ental character or spirit of culture

omin ant assumption of a people or period . The sec ond level concept is that of

climate which can be defmed

s

the perceived attributes of an organisation and its

subsystem

s

reflected

in

the way it deals with its memb ers, groups and issues. The

emphasis is on perceived attributes and the working of the subsystem s.


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Organisations

The third level concept relates to the effect of the climate . The Random House

Dictionary defines atmosphere as a ~ i s t h c t uality and environment as affecting the

existence or development of someone or something . The concept of atmosphere car1 be

proposed as one related to the effect of the climate. The fourth level concepts is that of

culture . The cumulative beliefs, values and assumptions underlying transactions with

nature and important phenomena, as reflected in the artifacts, rituals, etc. Culture is

reflected

in

the ways adopted to deal with phenomena.

The above explanation thus, points out that just as individuals and personalities do so

does organisations. It is found that organisation, like people, can be characterised in terms

like rigid, friendly, warm, imovative, or conservative. These traits,

in

turn

can be

used to

predict attitudes and behaviours of the people within the organisation. There is a systems

variable in organisations that, while hard to define or describe precisely, nevertheless

exists and which employees generally descr~ben common terms. We call this variable

organisation culture . Just as tribal cultures have token and taboos that dictate how each

members will act towards fellow members and outsiders, organisations have culture that

govern how members behave. There seems to be wide agreement that organisational

culture refers to a system of shared meaning held by members that distinguish the

organisation from other organisations. This system of shared meaning is, on closer

analysis, a set of key characteristics that the organisation values. There appears to be ten

characteristics that, when mixed and matched, expose the essence of an organisation's

culture.

1 ) Individual initiative :

The degree of responsibility, freedom, and independence

that individuals have.

(2)

Risk tolerance

The degree to which employees

re

encouraged to be

aggressive, innovating, and risk seeking.

(3) Direction :The degree to which the organisation creates clear objectives and.

performance

expectations.

4) Integration :

h e egree to which

units

within the organisation are encouraged

to operate in a coordinated manner.

5 ) Management support :

The degree to which mbnagers provide clear

communication, assistance and support to the3 subordinates.

6 ) Control :

The number of rules and regulations, and the amount of direct

supervision that is used to oversee and control employee behaviour.

7) Identity :The degree to which members identify with the organisationas a

whole rather than with their particular work group or field of professional

expertise.

8) Reward system

:The degree to which reward allocations (that is salary

increases, promotions) are based on employee performance criteria in contrast

to seniority, favouritism, and so on.

9 )

Conflict tolerance :

The degree to which the employees re encouraged to air

conflicts and criticisms openly.

(10) Communicationpatterns :The degree to which organisational communications

are restricted to the formal hierarchy of authority.

Each of these characteristics exists on a continuum basis from low to high. By appraising

the organisation on these ten characteristics, a composite picture of the organisation's

culture is formed. This picture becomes the basis for feelingsof shared understanding

that members have about the organisation, how things are done in it, and the way

members are supposed to behave. The original culture of the organisation is derived from

the founders in philosophy. This, in turn, strongly influences the criteria used in hiring.

The actions of the current top management set the general climate of what is acceptable

behaviour and what is not. How employees are to be socialised will depend on the degree

of success achieved in matching new employees, values to those of the organisation in the

selection process and top managementq, and the preference for socialisation methods.

Figure 8.2 summaries how a organisation's culture is established and sustained.

8 3 2

Structural

Change

Structure is an integral part of any organisation, so much so that it is difficult to imagine a

organisatiun without a structure . Organisational structure can be defined

as

the

arrangement and interrelationship of component parts and position of a company. It


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specifies division of work activities and shows how different functions or activities are

OrganisationDynamics

A

linked. It also indidtes the organisation s hierarchy and authority structures and shows

Response

to cmwth D Y

authority relationships. It provides stability and continuity that allow the organisation to

survive the comhgs and goings of inaviduals and to coordinate its dealings with its

environment.

Figure

8

Process

of

01.panis.tion s

Cdture

A

Management

P

The common features usually containedh the concept of organisationsare

Organisation s

Founders

(a) composition of individuals and groups of individuals,

A

(b) Orientation towards achieving the common objective,

Sociabation

(c) Differentiated functions,

(d) Intended rational co-ordination, and

(e) Continuity through times.

n organisation is a mechanism by which the strengths of an individual multiplies,

something which facilitates administration to promote specialisation through stimulating

growth and creativity.

t the same time, the degree of organisational effectiveness depends on the type of

organisation structure, which has been adopted by the company. Organisations are a

manifestation of the management process. As managers manage, they create organisation

struchues which respond to environmental opportunities and threats. But from the point

of view of the design, process organisation structure is created as managers group jobs

and assign responsibility for co-ordination and decision making.

No organisation can be operative, without a structure. The structure of an organisation

refers to the prescribed and relatively fixed relationships that exist among jobs and

positions in an organisation without structure individual behaviour and group

relationships among people cannot be directed and regulated to achieve the basic goal of

organisational effectiveness the need for structure arises primarily because it facilitates

the operations of the enterprise, enables the optimum use of technological achievement,

stimulates creativity and encourages growth.

There are four elements of organisation structure.

Division of Work

Organisations make use of division of work in following two ways

(a) Vertical, and

(b) Horizontal.

The vertical component exists in the form of chain of command which supplies

criticality to hierarchy of relatio~lships.Chain of command is essential for job

distinction and job execution. The vertical dimension relates to delegation of

authority.

The horizontal dimension relates to job range and job depth. Job range implies to

spectrum of tasks supposed

to

be performed by the individual in relation to

performing of his job. Job depth refers to the discretion which the individual may

exercise in selecting the means

to

perform the tasks and the sequence

in

which the

task could be performed. However, a balance between the depth and range could

be struck by management.


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Departmentation

After designing individuals job, each job is carefully analysed and the job

specifications are laid down to ascertain if the specified task has been performed in

accordance with the prescribed norms and specifications of jobs. Thereafter, the

jobs are grouped together so that the whole group of jobs is assigned to a single

supervisor which is technically known as departmentation. The departmentation is

usually done on the basis of (a) functions, (b) territory, (c) product, (d) customer,

and (e) project.

(a) unctioml departmentation is enforced on the basis of important functions

such as production, marketing, personnel and finance. The organisation will

benefit from specialisation but it may confront problem when the group of

objective is sought to be achieved of members due to fraternity and other

considerations of

the

expense of organisation's objective.

(b) Territorial departmentation seeks to assign jobs according to locations.

Sometimes, the territorial managers are required to coordinate the tasks because

the managers at the head quarters will find it difficult to do so because of

distance and effective supervision and control.

(c)

Product departmentation

groups organisations according to the products

produced by the organisation. The products can be many like sugar, fertilisers,

vegetable oil etc. It helps in making a formation of heterogeneous groups.

(d) Anorganisation can be distinguished according to customers industrial

economical

or

final consumers. Such a departmentation will ultimately lead to

heterogeneous grouping of technical and scientific skills.

(e) Project departmentation is followed by such organisations which produce

large and unique products such as aircrafts, naval ships and the like. If an

organisation is assigned with a project of developing a new aircraft, the

responsibility is entrusted to the Project Manager. The project will accordingly

be provided with the services of the technical experts, engineers and scientists

to

execute the project.

fter

the completion of the project all of them will go

back to their original positions, i.e.

permanent

assignments.

Span of Control

After the formation of the departments, the size of department depends on the

number of subordinates which a superior can manage efficiently and effectively. A

'tall' organisation will have a wider span of control, i.e. large number of

subordinates under one superior and a 'flat' organisation will have a narrow span

employing thereby smaller number of subordinates, under one superior.

The size span of control ultimately depends on the nature of superiors and

subordinates, their training, nature of jobs and nature of organisation behaviour

and structure.

Delegation of uthority

Authority relationship in terms of superior-subordinate relationship is an important

element in the organisation. Since specialisation is sought to be achieved by the

organisation through division of work, no one could work independently unless

there is a system of delegation of authority. By entrusting authority and

responsibilities to the subordinates, they may be able to take decisions

independently within the framework of delegated authority. As soon

s

the

authority is entrusted to the worker he acquires the right to make use of the

resources (men material) independently for the achievement of the desired

objective. The extent to which he has discretion over the use of resources is a

measure of authority.

Thus, delegation is the authorisation to act independently. Manager who delegates

authority to subordinates still retain the authority. Decentralisation on the other

hand reflects the dispersal of authority to the ultimate level in the organisation. In

other words, delegation is said to be the process, whereas, decentralisation is the

result of the process.

SAQ

Wrlte

a

short note on orgmisational culture and climate .


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8.4 TYPES OF ORG NIS TION STRUCTURE

O@sation Dynamic

Re ponse to rmwth D

Line Organisation

For a line organisation tuthority is delegated directly from top to bottom in an unbroken

line. There are no staff organisational units. In fact, both staff and line functions work in

an integrated manner in the line units, e.g. in small organisations.

Advantages

It has simple, direct line of responsibility and authority which facilitates quick

decision making, discipline and control and the flexibility to adjust to changing

conditions.

Disadvantages

Line organisation leads to cqexcessive load of administrative responsibility,

resulting in problems such as

ow

evels of specialisation, difficulty to find and

train qualified personnel for the line function, and difficulty to centrally control the

activities with the growth of the organisation.

Functional Organisation Structure

This kind of structure is one

in

which there are a number of functional specialists

supervising the activities of a single subordinate.

Advantage

It can have a high degree of specialisation, easy filling of positions because of

functional specialisation and the ability to provide better technical supervision for

subordinates.

Disadvantages

It suffers from the disadvantages of dual authority and violates the principle of

single accountability. Secondly, it is difficult

to

get technical experts to work

together smoothly.

The Line

and

Staff Organisation

The third major type of organisation is the 'line and staff organisation'.

In

line aid slaff

organisation, line authority moves down in the same manner as in the line organisation.

n

addition, specialists are attached to line managers

to

advise them on important matters.

The line and staff organisation provides for specialised assistance such as that found

in

the functional organisation, yet it avoids the pitfalls of dual authority and divi'iled

accountability.

Advantages

Its characteristic advantage is of having specialised knowledge, single lines of

responsibility and authority and lhe relative ease

in

the employment and training of

the line and staff.

Disadvantages

The biggest drawback is the conflict which generally arises between the two, i.e.

line and staff. Such problems are more common in case the role and authority of

the line and staff is not well-defined.

Matrix Structure

More recently, the matrix structure has also been added. Matrix structure is an outgrowth

of vertical hierarchy. It seeks to combine the characteristics of both functional and project

structures. It may be defined as an integrated organisation system which encompasses a

multiple command system and support mechanism duly insulated with organisational

culture and behaviom patterns. Matrix structure becan~e opular with the development of

aerospace industries in USA in 1960s. Its important elements are

as

follows

:

(i) Key matrix roles

(a) Top leadership

(b) Matrix bosses

(c Two boss managerslmatrix subordinates

(ii) Inter-dependence of' departmznts

-

Thus, utilising the resources

optimally.


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8.5 JOB

ANALYSIS AND DESIGN

An organisation is like a network of roles in which tasks are assigned in order to achieve

predetermined goals or objective. The relationships that exist between the individual job

and the position constitute the structure in an organisation.

complete job analysis and design involves

(a) Designing Individual Jobs

(b) Job Analysis and Job Specification

(c) Job Enrichment and Rotation

(d) S t r u m g ndividual Jobs in Organisatim~

Designing

Indlvldual Jobs

Job design means specificationof the contents, methods and relationships of jobs

in

order

to satisfy technological and organisational requirements as well as social and personal

requirements of the job holder. Job design is related to technology task, productivity and

worker satisfaction.

Various researches has identified following six requisite task attributes that are

expected to enhance employee satisfaction and attendance in

all

organisations

(i)

Autonomy for individual and group decision m king for planning and carrying

out the work activities,

(ii) Opportunities for social interactions,

(iii) Knowledge and skills required and proper utilisation thereof,

(iv) Variety,

(v) Required social interaction, and

(vi) Responsibility.

These critical attributes will finally result in the following

(a) High internalwork motivation,

(b) High quality work performance,

(c). High satisfaction with the work, and

(d)

.

Low absenteeism and hunover.

Job Analysis and Job Specification

For designing

a

job, all printout facts about the job ought to be known. Job analysis may

be defined as

a

process of making in-depth study of every aspect of job to be redesigned

and perfonned and recording the observations in the form of a report. It includes both

(i) job description, and ii) job specification s shown in Table

8.1.

Table 8.1 ob Analysis

I

1)

1

Jobtitle

1)

I

Education

Job Description

st tement

containing items such the

following

2) ~ocation

2) kperience

Job Specification

A statement of qualifications necessary to

do the job. It contains

6)

Material and forms used Physical efforts

71 I Supervision given or received

Physical skills

3)

4)

5 )

8) Working conditions

]

8) Responsibilities

Communicationskills

Emotional ch~actaistics

Job summsry

i

3)

Duties 4)

Machines, tools and equipmeat

5)

Training

Judgement

Initiative

Solirce

ale

S

Beach

1980),

Pcnonncl

he

anagement

of

People

at

Work

th

Edition, Macmillan.

New

Yak.

1 1)

Usual sensory demands, such

as,

sight, smell and hearing


9/20

Thus, job analysis includes the following components

(a) Identification of the W k erformed by the individual,

(b) Machines, tools and equipment utilised,

(c) Materials, products or service involved, and

(d) Training, skills, howledge and personal traits required of the worker.

Job Enrichment and Rotation

n

redesigning jobs, satisfaction and response of employees are essential components of

organisational effectiveness. To make jobs Illore responsive and result oriented, a scheme

of redesigning of jobs is pursued by job analysis or management. The options for job

redesign are as follows

(a) Job Rotation,

(b) Work Modules,

(c) JobEnlargementIEnrichraent,

(d) Integrated Work Teams, and

(e) Autonomous Work Teams.

ob Rotation

When an employee is required to repeat the same routine everyday, he feels bored

and monotonous. This leads to lowering of morale and very high labour turnover.

'Ihe rotition of job improves not only the morale of the workers but also the

productivity. Job rotation is possible if the diversified jobs have similar skill

requirements. Rotation may also be possible if small training or exposure to new

jobs will enable the employee to acquire the needed skills.

Work Modules

Work modules may be stated as an extremely rapid form of work rotation, the

activity of the employee under this plan changes every few hours. The employee

may asks for a set of modules which may ultimately constitute a days job. Work

modules seek to increase diversity in jobs. They may change activities through

changing modules. It is both advantages and disadvantageous to the employees.

dvantages

It provides diversity and the choice to select jobs according to preference.

Disadvantages

In terms of performance such as

tasks

which

are

undesirable and thus

demoralising to the employees.

The demoralising effect may

be minimized

by individual choice of selecting work

modules of hisher choice. Inspite of this fact work modules present the same cost

and disruption as job rotation.

ob Enlargement Enrichment

Job enlargement

in

generic sense means addition of simple tasks to

a

job which is

simple

in

nature. In other words, job enlargement refers to rotating jobs nd

additional horizontal level duties. For example, soldering three connections instead

of one or putting on both the rear and the fronts of the

car

rather than one may

be

stated as the components of organisation.

The large ,enlargement techniques includes the following

Job Rotation t has already been discussed earlier.

Job Extension

: It can be introduced by allowing the workers to advance

up the line while working on the assembled product .

Additional

It may be assigned to the workers in the form of setting

Horizontal Duties

up of machines and tools before operation.

Job enlargement is a limited version9' of socio-technical approach. It

s ks

to

overcome the problems of specialisation and routinisation of simplified task by

enlarging the job content. This will provide greater satisfaction to the worker, apart

from relieving him of monotony and fatigue. Consequently the workers

capabilities may

be

utilized more effectively.

tgmisdon Dynamics A

Reqaose

to

Growth


10/20

Thus, when a job is expanded horizontally it is known as Job Enlargement .

Conversely, when it is expanded vertically it is known as Job Enrichment .

Job enrichment is one of the techniques of job redesigning and is adopted

s

a

motivational device which is ultimately reflected in organisational effectiveness.

Some call it an outgrowth of Herzberg's -0-factor ?heory (Motivation-Hygiene

Model) and a few of them view it as a technique of orgahisation development.

Whether we call it a motivational device or a technique of organisational

development, the fundamental objective is employee's satisfaction and the

improvement in the quality of work life. Critical Variables for job Enrichment

relate

to

(a) jobs, b) the employee, and (c) the organisation as shown

in

Table 8.2.

Table

8 2

a) Higher skill level,

a) Approval nd support,

b)

Reasonable cosb. and

c) oper

ystem of evaluation.

Integrated Work T ea m

Since most work in the organisation is to be completed by the group, hence,

integrated work teams will emerge.

When the work is to be completed by the team, a sizeable work is received by the

group. Depending on the competence and suitability of each member, the

sub-divided task is assigned to

him

This work

has

to

be

rationally integrated by

the team leader. In the work team, the work of an individual worker is supervised

properly by a qualified superior. Integrated work teams are more suitable for such

activities as building

maintenance

and constnrction.

utonomous Work Teams

These teams represent job enrichment at group level. The work of the te m is

accomplished through vertical integration. The team is assigned the goal to be

achieved. It is left to the discretion of the team to determine work assignments,

rest-intervals of each employee and the procedure of inspection adopted by the

team. The team may select

its

own numbers to perform different types

of

activities

related to the achievement of the specified goals. When tasks are distributed to the

individual workers who have specialised themselves in the performance of such

tasks,

there is little scope for supervision. Hence, the cost

of

supervision reduces.

Consequently,

l l

autonomous work team is quite successful and rewarding. There

are variety of jobs, dignity of work, open output, reduction in wastage, and lower

absenteeism and turnover of workers

in

the organisation.

Structuring Individual Jobs in Organisations

Organisation structure passes through the following five stages

(a) Division of work

b) Identification of different tasks or jobs necessary for the achievement of

organisational objective.

(c) Grouping together of similar activities under a common head which is known s

departmentation,

(d) Allotment of jobs to the individuals according to their aptitude and ability, and

(e) Rationally coordinating the work done by individuals or the groups so as to

achieve the desired objective of organisation with efficiency.


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Now, it is clear that organisation structure revolves round (a) individuals, and

(b) individual tasks which

are

performed by them.

Each of these tasks is carefully and meticulously interwoven by the manager with the

help of coordination, motivation, communications and authority relationship to result in

organisational structure. This structure is again utilised by individuals and groups achieve

organisational goals with efficiency by eliminating wastage in men and material.

Conclusion

Organisation is a mechanism through which management directs, coordinates and

controls its business. Its concept includes division of work, sources of authority, various

role relationsl~ips nd structures of coordination. The different types of organisation,

various elements of organisation structure have been described in Figure

8.3.

Key Concepts

Organisation

Organisation and Design Structure

Line

Figure 8 3

Organisation

Structure

SAQ

(a) What type of structure do you think exists in your organisation Do you think

there is a relationships between the technology used and the organisational

structure

(b) Ijifferentiate between Job Analysis and Job Specification .

8.6 AUTHORITY AND POWER

8.6.1 Meaning

For an org'misation to work efficiently and smoothly a formal authority system must be

supplemented with informal power

and influence. It has often been observed that

managers use more than their official authority, to obtain cooperation from their

subordinates.

Power is the ability to exercise influence or control over others, even demands

obedience. Authority on the other hand is the right to command

and

extract obedience

from other. It comes from organisation and it allows the leader to use power.

Organisation Dynamics

A

Response to

rowth

Decay

However. it is not necessary that one llas authority before, exercising power. s a rnaiter

of fact, many a managers in Indian organisation f111d it difficult to exercise auUiorlty

vested wit11 them.


12/20

organisr4ioor 8.6.2

Dynamics

of Power

I

There are several postulates described

to

provide

n

understanding of the dylianlics of

power

in

groups and organisations.

(i) Who wants power

The postulates relating to 'who wants power' are as follows :

(a) Power is not equally distributed amongst members. As different members of a

group or an organisation have varied types and levels of knowledge, education,

experience, personality, physical traits and positional authority, they are likely

to differ in terms of their power to influence other persons.

(b) People differ in terms of values they place on the gain and exercise power.

Researcli shows that amount of power exercised by an individual is the function

of hisher power motives. Higher the power motive in an individual, more likely

will it be that he/she seeks jobs providing himher opportunity to advise,

evaluate and control the behavim of others.

(c) Power holders resist attempts to change the distribution of power. Persons who

strive forpower

nd

$us, are able to get it, are unwilling to share it with other

members of the group. They hold the view that possession of power enables

them to gratify their needs by obtaining thing that satisfy them, 'Hherefore.

they put their best efforts to maintain the status quo

(d) Power losers intending to regain it initially, attempt to enhance their power

individually, but

if

they fail then, they form a coalition.

(ii) How power is acquired

The power is acquired by enhancing others dependency on self and reducing uncertainty.

a)

Thus, greater an individual's dependency on another person, the more powers

the other person has over this individual. However, this dependency will have to

be in terms of resources (material or non-material) for which the alternative

supply is absent or limited.

(b) An individual who cannot easily be replaced by others, has more power than

those who can easily be replaced, e.g. the maintenance staff in an organisation,

t r ee d to control unreplaceable ability in case of machine breakdown hold

greater power despite their low position in the organisation hierarchy.

(iii)

h y

s power sought

Power is sought to accomplish others compliance with one's own wish. The postulates in

this respect include the following :

a) Reward and coercive powers are considered weak reasons for compliance.

n

the other hand, expert and charismatic power that arise from within the

individuals have a stronger potential for compliance.

(b) Coercion minimises attraction for the power centre and enhances resistance.

People dislike working under fear of punishment, resist coercive efforts and

hate the person exercising coercive power.

(c) Although people don't like coercion, it doesn't imply that coercion is

ineffective.Greater the strength of potential punishment, more the compliance.

(d) When lack of motivation, rather than lack of ability, is associated with

resistance to influence, there is utmost reliance on coercion. Research shows

that more workers are dismissed for poor attitude and lack of discipline rather

than

lack of ability.

(el n individual's expertness

in

one task enhance his ability to exercise influent%

on the other task.

f)

Exercise of expert power outside the perceived limits lowers its strength.

8.63 Authority in the Organisational Context

n org@sation is not made up of just formal authority relationships but also of informal

relationships which add a new dimension to organisational life. While the formal position

of an individual determines his role the informal relationship must'be understood in their

right perspective

in

order that the vast potential of every individual within the

organisation is directed towards the achievement of orgbisational goals.


13/20

Role Organisation ynamics

A

Response

to rowth

Decay

Role

nay

be defined as a social role a unitary wn ce pt within a pluralistic dimensional

organisational structure. It is sociolog ical concept which som etimes ignores ir:dividual

psychological yearnings.

Role con.jures up a set of behavioural expectation s that are associated with one's

particular positicn in a group. The expe cted behaviour of an in dividual is determine d by

three influences :

(a) the expectations of the individual himself,herself

(b) the expectation of the formal organisation, and

c) the expectation of the informal organisation.

Status

Status may be defined as a so cial positioii within an organisa tion. It refers to the relative

position of an individual com pared with others in the groups. Status is related to but

distinguished from role . Society provides for each status or position of single mould

that shapes the belief a i d action s of all it.. occupants.

While role is physio logical involving functions , adapta tion and process, status is

sociological involvin g a location in social space which implies attitudes, values and

behaviour.

ontlict

A

position in an organisation al structure evokes only a one dime nsional administrative

conce rn how best to get the job done . No one is even concerned about looking at the

role from the member's own point of view. The fee lings, it evoke s, the inhere nt meaning

it holds, the stresses and strains it brings etc. Thus , dilem mas emerge.

The pragmatic approach stems fro r~ lhe fact that every human situation further engenders

contrad ictions and prcjblematic features. Every orga nisation structure is inh erently

social by nature am as such must confront its members with dilemmas of adaption.

There is no best or set mode of adaptio n to the dem ands of an organ isational

structure. At best there can only be an expedient mode of adaption when at the best of

times can bring about internal contradic tion between the ind ividuals personality structure

and the organisation's structu re.

Much of the time in organisatio~u, eople are not treated as they should be. Often they

are treated as individua ls always gulde n by reason capable of being program med,

motivated by inc entives and requiring fairly satisfactory work conditions . How ever, in

reality people are subjective. They like recognition. T hey enjo y the freedom even if

partial to control situations. Rigidity makes people disgus ted, unhappy and with no

motivation.

Participation

I

This is possible only if the de finitions of goals and expec tations are compatible with

\

individuals. It depend s on the na ture and culture of the work group in wh ich the

individual finds himselfherse lf. We need to focus on the actual behaviour of peo ple than

on abstract rules on the individuals interaction with his w ork group , rather than with his

interaction with the total organisatio n. No organ isation can surviv e if its image is reduc ed

to a mechanical system w here roles are defined in terms of an interlockin g system of

coordinated demands that ignores the expec tations

and

hopes of the individuals working

within it.

ImproveQuality of

orking

Life

It

was m ore than forty years ago that D ouglas McGregor formulated his theory on

conflicting pull of authoritarian ism and humanism. Th eory

Y

dvocated a liberal

approach while theo ty X was the bureaucratic approach. Almost all managers

talk

in

theory Y

erms

but act in theory X erms , says Prof. Maison Haire of the

MIT,

USA.

How ever, despite the curren t debate today, theory

'I

s still. booming in the form of

Quality Circles7'. A Quality Circle, prevalen t in many a big companies is a sm all group

of people between 3 and 12members who do similar work, and who meet together

regularly for about couple of hours every week or fortnight in cornpany time, usu ally

under the leadership of

their foreman or supervisor, on a voluntary basis, to identify

problems, maly se the causes recomm ended, their solutions to the management and where

possible , to implement the solutions them selves.


14/20

However, in the 80s and 90s it has hecome imperative to stress on quality where all

employees are involved in som e torm or the other. This is because econonly has opened

out, competition is at its peak and t o get international recognition by gaining

I S 0

9000

certification. This certification is Ule only gateway to the European Community cour~tries

to export gcwds. This is a programm e of work w hich if initiated will provide greater

opportunities for achievement,

responsibility


15/20

Oqmisation

Dynomica - A

8 7 TRANSFORMING AND RENEWING ORGANISATION

wme,,m

h

India's industrial and economic sector has progressed significantly in the last eight years,

i.e since 1991 due to the numerous changes in the domestic business environment. The

original socialist policies, initiated in the early 1950s, characterised by the development

of the core sector by the government, the growth of ancilliaries/derivative industries in a

protectionist environment, and the nationalisation of essential industries have now been

superseded by a more capitalist outlook. This liberalisation of the economy over the past

few years can be seen in the increased privatisation of industry, entry of foreign investors

and convertibility of the Indian rupee.

This has lead to a new and hitherto nonexistent scenario. To cope with this change

organisations will need to resuucture and redesign their existing operations.

While the realisation that change is imperative has dawned amongst most Indian

entrepreneural companies; a clear blueprint for change seems to be wanting in many.

From the available literature on organisation transformation and from the experience of

the concerned professionals, a methodology for change and organisational dynamics has

been outlined.

8 7 1 onducting Organisation Diagnosis

To initiate a process of change, it is of utmost importance to encourage the existing

HRD/Persomel Department to conduct an unbiased organisation diagnostic study to

identify the areas of strength, weakness, opportunity and threats of the organisation. This

can be done through the help of open ended interviews with a large cross section of

employees chosen at random and in addition using observation

s

a tool and through

structured group discussions. The findings can then

be

examined by a top management

team. They could then brainstorm on the possible areas of weakness and clearly identify

areas of attention.

8 7 2 Defining the Mission

The next step could be to restate the mission in the light of the above findings. In

companies where the mission of the company is not clearly stated

in

a crystalised form, it

is worthwhile to define it. Experienced consultants opine that many Indian companies do

not have a clearly'stated mission. Even those who have it, do not communicate it to the

employees. Consequently, these organisations lack direction and the employees feel

ambivalent about their roles and find the internal environment of the company less

supportive. It is seen and tested that successful organisations portray that their mission

were clearly stated, e.g. Tata group in India, General Motors in USA, Sony in Japan etc.

8 73

Planning for Improved Performance

Once the mission of the organisation is defined, the next step is to lay down clear

objectives, as to what the organisation desires to achieve and in what time frame. Having

set the objectives the next step is to plan for improved performance. To do this exercise it

is needed to set up cross-functional task forces to examine the areas of weakness and

work out alternative solutions to convert it

into an

area of strength.

Some of the companies in India both in private and public sector companies have found

the exercise very rewarding.

Some of the benefit are as follows

(a) Through this exercise employees participate in the process of change and thus

find greater interest to implement the change process.

(b) Areas of attention which hitherto was unnoticed get the deserved attention.

(c) Organisation development becomes an employee movement to take

responsibility of their organisation and change it.

(d) There is a tremendous improvement in the communication level in the

organisation and the vested interest which

t y

to create confusion and

demoralisation becomes less effective.

(e) Employees shift into a new paradigm of becoming the partner in production and

productivity. They understand the competitive edge that will make their

organisation profitable and a forerunner in this open ,economy. They will work

towards it and see that their organisation grows and develops to new heights.


16/20

8 7 4

Need for

Visionary

Leadership

While a methodical approach will help, whqt is most crucial is the need for visionary

leadership. In an atmosphere where speedy, correct and effective decision making are the

order of the day infusing the people with vision will become more pronounced. The

leader will be required to create a focus and lead people through a process in whi-h they

march forward to actualise the cherished goals. The power of the leader in the

organisation will not arise from his designation, shareholding pattern or functional

specialisation, but from hislher sphere of influence on the people, the ability to empower

them and clearly educate and guide them. The leader will thus, be a culture creater, an

identity to fashion people's aspirations to the organisational goals.

Organisation's evaluation of people, to man superior positions will be based on technical

skills coupled with the quality to develop and inspire people and not based on seniority

and age.

The effect of change is always studded with resistance and power blocks. It thus, needs

patience, perseverance, tact and above all, a tremendous commitment at all levels, to

change. The path is difficult as it involves changing the value system, culture, structures

and systems which have been in existence, to which employees are acclaimatised with

and from whom some people derive their power and existence. When these get shaken,

the top management sometimes becomes unsure and is put under pressures of different

kinds. The result; change is aborted. However, those who go through it find the process

rewarding and a ready for albetter future. Thus, finally, Indian organisation now face

challenges, opportunities and risks that have been alien to them, in the past. What is

required is a clear and committed strategic intent, strong structure, right attitudes,

a

clear

and acceptable work ethic, intelligent, sharp techniques and commitment from top

management downwards to the development of such an organisation. Being competitive

implies the ability to harness the talent of each member of the organisation in the pursuit

of clearly outlined common objectives.

S Q

(a)

How will

coilducting of organisatio~~iagnosis help in improving an

organisation, according to you Discuss.

(b) Is it possible for a manager to make organisation dynamics work

to

personal

advantage Discuss.

c)

Describe in detail, what approach you believe you would follow for

determining whether

n

existent organisation is relatively good or bad

8 8

C SE STUDIES

Case

1

Kaiyur Computer Company

small group of managers at Kaiyur Computer Co. met regularly on Thursday

morning to develop a statement and capturing what they considered

to

be the

Kaiyur Culture . Their discussions were wide ranging, covering what they

thought their firm's culture was, what it should be and how to create it. Implicitly,

they were probably influenced by other firms in their environment, as they were

located in the Electronic and Computer Zone of Mumbai, Maharashua.

Kaiyur Computers was a new firm aving been started just a year ago. Since the

organisation was still

in

the infant-stage, managers decided that it would be timely

to create and instill the type of culture they thought it would

be

most appropriate

for their organisation. After several weeks of brainstorming, debating, and

@writing, he management group eventually produced a document called Kaiyur

Ethical Codes which described the company as they saw it. The orga~lisatioru'al

culture statement covered such topics as Treatment of Customers , Relations

among work colleagues , Preferred style of social comrnunicat~on , Our

Decision Making Process and the Nature of our workiqg Environment .'


17/20

Vijay Saxena read over Kaiyur Ethical Codes , shortly after he was hired as a

Organisation ynamics

A

Senior Consultant for software training. After observing managerial and employee

RespometoGrowth Decay

behaviour at Kaiyur's for a few weeks, he was struck by the apparently wide

discrepancy between the values expressed in the document and what he observed

as actual practice within the organisation. For example, the Kaiyur Ethical Codes'

contained statements like Quality attention to detail is our trademark. Quality is

never an accident but to work on it deligently and regularly. Our goal is to do it

right the frrst time. We intend to deliver defect-free products and services to our

custonlers on the date promised . However, Vijay Saxena was already seen

sending reports showing that a number of defective computers were being shipped

to customers. And his personal experience supported his worst fears, when he

borrowed five brand new Kaiyur computers fram the despatch room for use in a

training class and found that only two of them started up correctly without

additional technical work on his part.

Another example of difference between the Kaiyur Code of Ethics and actual

practice concerned the statement on communication. It stated that managing by

personal communication is part of the Kaiyur's way. We value and encourage

open, direct, person-to-person communication as a part of our daily routine .

Executives and officers bagged, about how they arranged their chairs to show

equality and facilitate open communications wherever they met to discuss the

Kaiyur Ethical Codes . Vijay had heard the Open Communication buzzword a

lot, since coming to Kaiyurs' but hadn't seen much evidence of it. As a matter of

fact, all others meetings used a more traditional layout ,with top executives at the

front of the room. Vijay believed that the real organisational culture that was

developing at Kaiyur s was characterised by secrecy and communication that

followed the formal chain of commanci, i.e. level of status by level of status

downwards or upwards. Even the Kaiyur Ethical codes Vijay was told, had been

created n secret.

Vijay soon became d:sillusioned. He confided in a colleague one afternoon that

Kaiyur Ethical Codes document was so at variance with what people saw and did

every.day, that very few of them took it seriously . Employees quickly learnt what

was truly emphasised in the organisation-hierarchy, secrecy, and expediency and

focussed upon these things instead, ignoring most of the concepts incorporated in

the document of Ethical Codes . Despite his frustration, Vijay Saxena stayed with

Kaiyur's until it filed for bankruptcy two years later. Next time , he thought to

himself

as

he cleaned out his desk.

I

will pay more attention to what is actually

going on, and less to what 'top management' says is true .

Furthermore, he thought to himself, I guess you just cannot create ethical codes

and values that can be followed in practice .

uestions

(a) What is

mor

important, the statements in a corporate culture or managerial

behaviour ?Why ?

(b) Why did the executives of Kaiyur Computer Co. act as they did ?

(c) Why don't employees like Vijay Saxena confront the organisation, and

challenge the inconsistency between values, ethics and behaviour ?

(d) How can executive go about changing the old values that govern an

organisation

?

Case

Unique uto Corporation

As a large supplier of automobile accessories, lighting equipment and plastic parts,

this company enjoyed favourably high reputation to supply superior products and

competitive prices and in keeping with buyers' schedules. Each year tooling for

new models of automobiles, millions of rupees was spent, and re-arrangement of

factory flow plan was undertaken. This work necessitates a large force, the

management of which is given very close attention.

Until seven years (1991) ago, a portion of the formal organisation structure of the

production plant was as shown in Figure

8.4.


18/20

I Works Manager

Factory

_

Superintendent

Y

Estimating

i l

Supervisor

oom

Shooter

Sgure

8 :

Organisation St ~ ct urefUnique Auto Corporation

n

99

Definite functionalisation was believed necessary. For example,

if

a problem arose

in die casting, one person or a group of persons in die-casting was responsible and

stayed with the problem until a satisfactory answer was found. Experience showed,

however, that too much time was spent in the shop by productive personnel who as

a consequence did not have sufficient time for designing or developing work.

Further, it proved extremely difficult to estimate time and cost for following upon

tooling and trouble shooting.

As a result, the organisation structure was changed to that shown in Figure

8 5

This change took place

in 1995

Production

-

, m ,

Superintendent

w

Foreman

Supervisor

Figare

8

:

Organisation Structure

o

Unique Auto Corporation n 995

This change was triggered by the new works managers who joined the company at

that time. Ofcourse, the unsatisfactory results from the existent organisation made

the suggested move to improve it was highly accepted. The new Works Manager

believed that emphasis upon specialisation and industrial engineering were what

was needed. A comparison of organisation structures given in Figure

8 5

and.

Figure

8 4

reveals that immediately below the Works Manager, a department of

Industrial Engineering was established with units of work standards and plant

layout. In addition, Production Engineering was established with four engineering

department, viz. process, tool, plant and development. This represented some

shuffling around of the activities that had been under the Director of Facilities

refer Figure

8.5).

However, to date, tliis arrangement has not resulted in solving

the problem that existed before, ts adoption.


19/20

Personnel from Industrial Engineering gave extra effort to locate and analyse the

rp:anisatioo~ p a m i aA

various production problems being encountered but in general their efforts were

Response t Growth Decay

late and, in a number of cases, duplicated the efforts of specialists from tool

engineering and also process engineering. Further, the spec+alist approaches a

problem from a relatively narrow view point. Feedback and communication are

poor. Estimators and planners were not aware of production or design problems. In

several instances, the designers were putting this year's mistakes into next year's

tools. Further, the production person's problem were not being reflecled in the new

cost estimates being prepared.

The Works Manager is very much concerned aboul the present situation. For the

first two months of the model year which concluded in 1995 the company, in order

to maintain its reputation for meeting buyers schedules, has spent over 200 crores

in air shipments and 500 crores in overtime.

Quesliom

(a) What is the problem faced by Unique Auto Corporation

(b)

Other than those of organising, what factor would you feel might have influence

upon the problem faced by this company Why ?

(c) Point out the major changes made in the company going from the organisation

structure shown in Figure 8.4 to that in Figure 8 5

(d) What action do you recommend the works manager take ?Why

(a

No orgatlisation

m

urvive if

its

image js

redt~ircd

o

il

~~iecharucaysr trr

where roles

:are

defined an terms of an intertocking

sysiem

{if coijrciim ec?

demand" ailat ignore

the expectalio~ls

nd opes of

pecrplc

v;orkim,? wirl-lh il

Discuss

If

you feel

your

orgarusation is t o

a

lager

degree,

tMci:ha;iii:al

system", how do you think

it

can be

improved

?

b; meneed

for

structure arascs pnmwly bex:ause

~t

faclhtat~s

a,t: rlper urt l

ihs

t>rgan~satioil,r~ahles

le

opriir um

use of technoiogy,

skmular~s

rr:,rf:vrf:,

;lfi

enccwrngcs growth.

Discuss


20/20

Realising the importance of organising , the astute manager is always seeking to improve

the organisation being used. The developm tnts in organisation theory and the possible

benefits to be gained from better organisabon help stimulate and keep alive organisation

dynamics, or hence, organisations become outmoded, develop shortcom ings and permit

wasteful practices.

n

improvemeilt of major importance is usually to better the organisational environment

so that i t is not only conducive, but encourages the free exchange of ideas, stimulation of

creativity, and the resolution of difficulties promptly. This is possible in a conducive

organisation culture and climate.

A

proper organisational structure concentrating on what

the organisation needs and ca.i.become, the opportunities for improvement and growth is

made feasible. Organisation dynamics or change in the right direction will result in

progress m aximisation of the company.

8 10

NSWERS TO SAQs

Refer the relevant preceding text in the unit or other useful

books

on the top ic listed in

the section Further Reading to get the answers of the SAQs.

Documents

Organization Dynamics- A Response to Growth and Decay